* Iraq retains top spot as oil supplier to India
* Half of India's Aug imports came from Iraq, Saudi Arabia
* Overall imports about 4.7 mln bpd in Aug, same as yr ago
By Nidhi Verma
NEW DELHI, Sept 27 (Reuters) - India's oil imports from Iraq
surged to a record high in August as refiners replaced costly
African imports with cheaper Basra crude, tanker arrival data
obtained from industry and shipping sources showed.
The world's third biggest crude oil importer shipped in
about 1.32 million barrels per day (bpd) of Iraqi oil last
month, about a third more than July and 29% higher than August
2018, the data showed.
African crude imports fell 18.3% to 764,500 bpd as prices
for heavy sweet crudes from Angola, Cameroon and Chad - sought
by China's so-called teapots (small refiners) and major refiners
ahead of IMO 2020 - rose. CRU/WAF
Production cuts by the Organization of the Petroleum
Exporting Countries and U.S. sanctions on Iran and Venezuela
tightened heavy sour crude supplies, also enabling Iraq, OPEC's
No. 2 producer, to gain market share in India.
"In the spot market, Saudi and the UAE (United Arab
Emirates) barrels are not available while Iraqi oil was easily
available in spot markets at attractive prices, prompting
refiners to maximize purchases of Iraqi oil," said Refinitiv
analyst Ehsan Ul-Haq.
He said Iraq's Oil Marketing Company (SOMO) has been selling
oil through spot tenders as it boosts output.
SOMO sold July-loading Basra Heavy crude at a lower premium
to the grade's official selling price (OSP) through tenders.
Iraq held its position as the top oil supplier to India
followed by Saudi Arabia, the data showed.
MAXIMISING PRODUCTION
Iraq has been pumping 4.8 million bpd in recent months
instead of its target of 4.5 million bpd, while Saudi Arabia has
been producing below the targets. India's overall imports during August were about 4.7 million
bpd, same as in the year ago month, the data showed.
Indian refiners, like their global peers, are preparing to
maximise production of very low-sulphur fuel oil (VLSFO) to
supply ships from 2020.
From Jan. 1, the International Maritime Organization (IMO)
will bar ships from using fuels containing more than 0.5%
sulphur - compared with 3.5% currently - to reduce air
pollution.
"Some complex Indian refiners like Reliance can even produce
very low-sulphur fuel oil with high-sulphur oil like Basra
Heavy," Haq added.
Reliance Industries RELI.NS doubled Iraqi oil imports in
August from the same month last year to about 1.8 million
tonnes, the data showed. Due to higher imports from Iraq and Saudi Arabia, India's
overall imports from the Middle East rose to 16% in August from
July, the data showed.
Its imports from Venezuela in August averaged 412,000 bpd,
the data showed, growth of 48% from July.
Nigeria continued to be the third biggest oil supplier to
India.